TITLE
Recommendation to adopt resolution approving the decision of the City of Long Beach, as the Successor Agency to the Redevelopment Agency of the City of Long Beach, to reclassify the Permissible Use of the property at 620-632 South Street / 5705-5721 Lime Avenue, Assessor Parcel Numbers 7127-006-902, -903, -905, -906 and -907 (Subject Property), from Future Development to Sale of Property; declare the Subject Property as surplus; authorize City Manager, or designee, to execute any and all documents necessary, including a Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate with Lab Holdings, LLC (Buyer), for the sale of the property in the amount of $1,205,000; and accept Categorical Exemption CE 15-126.
DISCUSSION
Chapter 9 of AB 1484 (“Post Compliance Provisions”) provides that within six (6) months following issuance of a Finding of Completion to a successor agency, that successor agency shall submit, subject to approval of its oversight board, a Long Range Property Management Plan (LRPMP) to the State of California Department of Finance. Within the LRPMP, all property owned by the former Redevelopment Agency of the City of Long Beach at the time of dissolution shall be categorized into four categories for permissible use: Enforceable Obligation, Government Use, Sale of Property and Future Development. The LRPMP was approved on March 10, 2015. The property located at 620-632 South Street / 5705-5721 Lime Avenue (Subject Property) (Exhibit A) is currently listed in the LRPMP as Future Development. Staff is requesting to change the permissible use of the Subject Property from Future Development to Sale of Property, allowing for disposition of the Subject Property to be expedited.
The Subject Property is approximately 29,375 square feet and includes a 3,630-square-foot commercial building, which is potentially historic and an adjacent unimproved lot. The commercial building contains four units, two of which are vacant. The remaining units, 628 and 638 East South Street are occupied by Calvary Chapel and Blue Ribbon Drapery, respectively. Both tenancies are month-to-month and will be assigned to the Buyer at the close of escrow. The City has entered into an agreement with the Buyer for several properties along Atlantic Avenue in an effort to revitalize the corridor in a cohesive manner. As the Subject Property is located adjacent to the Atlantic Avenue parcels, the Buyer has expressed an interest in proceeding with the purchase of the Subject Property from the Successor Agency for $1,205,000, the fair market value of the property as determined by an independent appraisal. The Subject Property will be developed along with the adjacent Atlantic Avenue parcels consistent with the vision and intent of the North Long Beach Strategic Guide for Redevelopment.
In compliance with Government Code Section 54220 (Chapter 621, Statutes of 1968), on June 1, 2015, staff notified the State of California (State) that the Successor Agency was declaring all Future Development and Sale of Property parcels as surplus. Further, in accordance with past practice, a memorandum was circulated to all City Departments to determine their interest in, or objection to, declaring any parcel surplus. To date, neither the State nor any City Department has expressed an interest in, or objection to, the sale of the Subject Property. A Categorical Exemption, CE 15-126 (Exhibit B), was completed related to the proposed transaction on August 31, 2015.
This matter will be considered by the Successor Agency to the Redevelopment Agency of the City of Long Beach on September 22, 2015.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
AMY J. BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER